World Economic Forum Launches Probe into Whistleblower Claims Against Founder Klaus Schwab

The World Economic Forum (WEF), famous for its annual get-togethers of the world’s most powerful in Davos, is officially backing an independent investigation into some eyebrow-raising allegations against its founder, Klaus Schwab. This move comes on the heels of Schwab, now 87, stepping down as chairman and board member, effective immediately. Talk about timing.

The whistleblower complaint, which first came to light earlier this week, points some serious fingers at Schwab and his wife, Hilde. According to reports, an anonymous letter sent to the WEF board—whose members include familiar names like former Vice President Al Gore, Queen Rania of Jordan, and European Central Bank President Christine Lagarde—details claims of financial and ethical misconduct. Among the accusations: Schwab allegedly had staff pull out thousands of dollars from ATMs for him and charged private, in-room massages to the WEF, all while traveling on the organization’s dime.

But that’s just the start. The letter also claims that Hilde, once a WEF staffer herself, arranged "token" meetings to justify luxury vacations, all funded by the Forum. In response, the Schwab family flat-out denied any wrongdoing and insists that Klaus always repaid the Forum for those hotel massages. The family’s spokesperson says they plan to sue whoever wrote the whistleblower letter, as well as anyone who helps spread what they call “mistruths.”

The WEF board wasted no time, reportedly calling an emergency meeting on Easter Sunday to figure out the next steps. According to their official statement, the board is fully supporting the Audit and Risk Committee’s decision to launch an independent investigation, with help from outside legal experts. The Forum emphasized that all the allegations are unproven at this point, promising to keep the process transparent and to update their board as the investigation unfolds. Talk about high-stakes spring cleaning.

In the midst of all this, the Forum highlighted that under interim chairman Peter Brabeck-Letmathe and President/CEO Børge Brende, it’s business as usual. When Schwab’s departure was announced, the WEF praised his 55 years of leadership and reaffirmed the organization’s mission to foster global dialogue and collaboration, as the world gets even more complicated (as if it wasn’t already complicated enough).

For decades, Davos has been the place where the world’s top business execs, political leaders, academics, and even celebrities rub elbows and debate the future of the global economy. It’s not all charts and graphs, though—just ask former President Donald Trump, who addressed the gathering in January after his inauguration, promising a "Golden Age" for America and a more peaceful, prosperous world. If only peace and prosperity could be checked into a Swiss hotel room as easily as a minibar charge.